- The sale could grow up to $1 billion – sources
- Chevron sale launched with investment bank Jefferies
- Chevron got assets with the 2021 Noble Energy acquisition
Hoping a recent rally in energy prices will help attract buyers, three industry sources said that Chevron (CVX.N) is looking to sell its stakes in three oil and gas fields in Equatorial Guinea.
As part of the $13 billion acquisition of Noble Energy in 2021, the U.S. company obtained the assets in the West African country. Investment bank Jefferies, sources say, has been hired to run the sale process which could raise as much as $1 billion for Chevron.
Both Chevron and Jefferies declined to comment.
Sources say that as Chevron focuses on its most profitable production hubs including the United States Permian shale basin and Kazakhstan, the decision to sell the Equatorial Guinea assets comes.
The world’s top oil and gas companies are expecting to bring in smaller buyers, such as private equity-backed producers, to aging and non-core assets, with oil prices at their highest in seven years and a strong demand outlook.
In Equatorial Guinea’s Block 1, Chevron holds a 38% interest in the Yolanda natural gas field and the Aseng oilfield while in Block O it still holds a 45% interest in the Alen gas and condensate field. All three fields are under its administration.
When the company signed a production-sharing agreement for an offshore block in the Douala Basin, in December it expanded its presence in Equatorial Guinea. According to Chevron’s annual report, its 2021 reserves were increased by 441 billion cubic feet of natural gas by the Equatorial Guinea assets.